Did I get a good deal on this mortgage????
Posted by admin | Under FHA Secure Wednesday Sep 24, 2008I want to know what is the best deal I can work out with my loan officer or if I should see anyone else before accepting this offer. I was pre-approved for a $350,000 FHA Mortgage, 30 year fixed, with 6.5% interest rate, 2 points and a 5% seller concession. I have heard that this is not a great deal. If I did not have 2 points would that money for that 2 points be put towards the mortgage? I would like to know what I can negogiate with him so that it works to my advantage and is also the best for me. Our median credit scores are 672 for me and 610 for my husband. We make a littler over $90,000 a year and both have steady jobs. No collections or Late payments for about a little over a year. The only thing that is keeping my husband's score from increasing is what he has been working on over the past few months which is his balance on one of his credit cards, its a little over the 30% limit but not that bad with a bal of $550.00, and this is also his highest. Within the last year we have paid off all collections and debts we had on our credit. I have no credit card debt but 2 installment loans, an eductional loan, a car loan and one secured credit card with $200 limit w/ zero bal and a revolving credit card with $400 limit w/ zero bal. My husband has one installment loan, one reg credit card and two revolving credit cards below their limits. He has had some credits cards that went into collections but have been paid off so they are just listed as closed under his report. My total debt a month is $786.00. My husbands debt is about $250.00 monthly. With this being said what would you suggest a better deal? Should I try getting him to drop the rate but keep the points? or take the points off and leave the same interest rate? or change another complete deal. We plan on refinancing in a year or two to get a lower rate. Pls help, NO SPAMMING, or advertising your business! All I need is a few suggestions on what I should do from either personal or professional experience. Thanks so much.
As a senior loan officer in all 50 states I see that you can do better. Why refinance in one year. You want to get the best rate you can get today and avoid all of that. You also cant assume that the rates are going to get lower. You could get the same deal and not even pay the 2 points. The loan program that you are doing is fine based on the income and credit. Need more info shoot me an email. This is not a scam or a solicitation just your friendly neighborhood loan office looking to help.
He is not going to drop the rate, you have very bad credit and too high if debt, and are not even making your own down payment.
Pay off your debts and see why your score is so bad. I would guess you have some charge backs on there, you should pay those.
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The Loan officer is trying to make money just like everyone else. That is why the rate is at 6.5%. The par rate at this point is around 5.875% so that is not a great deal of monthly expense but it adds up over time. So that will be your call. The 2 points is about avaerage but you could talk him down to 1 point and that would save you about $3000 dollars. I have been in the Mortgage Business for 15 years now and the way that I negotiate is, either you pay an additinal amount monthly by having a higher rate or lower the rate and get the money from the front end points. Either way, the Broker will get his money just make sure you are ok with it, but I would not go for both it's either one or the other. As far as the "Good Deal" goes, it is an ok deal if you are comfortable with it, not really worth fighting over or delaying the finance transaction. Hope this has helped.
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As a senior loan officer in all 50 states I see that you can do better. Why refinance in one year. You want to get the best rate you can get today and avoid all of that. You also cant assume that the rates are going to get lower. You could get the same deal and not even pay the 2 points. The loan program that you are doing is fine based on the income and credit. Need more info shoot me an email. This is not a scam or a solicitation just your friendly neighborhood loan office looking to help.
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You got a bad deal, but with horrible credit (anything under 680 is considered pretty bad these days) you can't get much better than that.
Usually a broker will go to FHA loans if you can't qualify with a traditional Freddie or Fannie mortgage.
Keep cleaning up your credit and refinance in a few years, you'll probably get a much better deal if you can get your credit scores combined to be over 700.
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